State the effects of inventory errors on cost of goods sold and net income for periods 1 and 2.The response should be overstated or understated.
Period 1 Ending Merchandise Inventory is understated 
Definitions:
Real Property
Land and anything permanently attached to it, such as buildings and improvements.
A Car
A motor vehicle designed primarily for passenger transportation.
A House
A building for human habitation, typically consisting of multiple rooms and other spaces.
Trespasser
An individual who enters someone's property without permission or legal right.
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